A significant new leave entitlement for Ontario employees is now in effect. As of June 19, 2025, the Employment Standards Act, 2000 (“ESA”) provides a new, unpaid long-term illness leave (“LTI leave”), granting eligible employees up to 27 weeks of job-protected leave in a 52-week period. For employers, this isn’t just another statutory leave to track, it also intersects critically with your existing duty to accommodate under the Human Rights Code.

Here is what you need to know to manage this change effectively and mitigate legal risk.

What is the new LTI leave?

The LTI leave, introduced through the Working for Workers Six Act, 2024, provides up to 27 weeks of unpaid, job-protected leave for an employee with a “serious medical condition.” Key features include:

  • Eligibility: Employees only need 13 consecutive weeks of employment to qualify.
  • Intermittent Use: The 27 weeks do not need to be taken consecutively, which may complicate tracking. For tracking purposes, employers should note that any partial week of LTI leave taken can be counted as a full week, at the employer’s discretion.
  • Medical Certificate: Employers can request a certificate from a physician, RN, or psychologist confirming the employee has a serious medical condition that prohibits them from working, along with its expected duration.

Crucially, an employee who meets these criteria is entitled to LTI leave, regardless of whether they qualify for short or long-term disability benefits.

What are an employer’s key obligations?

Beyond granting the LTI leave, employers have related duties under the ESA that are easy to overlook, including:

  • Continue Benefit Plans: Under section 51 of the ESA, you must continue an employee’s participation in benefit plans (health, dental, life insurance, etc.) during the LTI leave, unless they opt out in writing. You must also continue paying the employer portion of the premiums.
  • Accrue Service and Seniority: The LTI leave period counts towards an employee’s length of employment and seniority. However, it does not count towards completing a probationary period.
  • Reinstate with Proper Pay: Upon return, you must reinstate the employee to their most recent job or a comparable one. You must also pay them the greater of their pre-leave rate or the rate they would have earned had they worked throughout the LTI leave.
  • Vacation Deferral: Under section 51.1 of the ESA, employees have the right to defer taking their vacation time until after the LTI leave ends, or to a later date agreed upon with the employer.

How does this intersect with human rights law?

This is the most critical area for risk management. The new LTI leave under the ESA and your duty to accommodate disability under the Human Rights Code are two separate obligations:

  • The 27-week ESA leave is a maximum period of protection; and
  • The duty to accommodate is an ongoing obligation that may extend beyond this 27-week period if it does not amount to undue hardship.

Takeaway: Denying a return to work or failing to explore further accommodation once an employee exhausts their 27-week LTI leave could lead to a human rights complaint, even if you have fully complied with the ESA.

What steps should you take to manage risk?

Proactive employers should implement these steps immediately:

  1. Update Policies: Revise your employee handbook and leave policies to explicitly include LTI leave and its procedures.
  2. Enhance Tracking Systems: Ensure your HR systems can accurately track intermittent LTI leave taken in partial weeks across a rolling 52-week period, keeping in mind the rule that allows counting partial weeks as full weeks.
  3. Train Management: Educate managers on the LTI leave’s requirements, the importance of not requesting excessive medical information, and when to involve HR for potential accommodation.
  4. Formalize Processes: Create a clear, documented process for handling LTI leave notices and medical certificates, and for managing the accommodation process separately from statutory leaves.

Let’s spark a conversation

The introduction of LTI leave reinforces the need for integrated leave and accommodation management. Ensuring your practices are aligned with both the ESA and the Human Rights Code is essential to avoiding costly litigation.

To discuss how these developments may affect your organization’s policies, benefits, and accommodation strategies, contact our Labour & Employment Group.